Cyber Liability Insurance

Why you need Cyber Liability Insurance Cover

Cyber insurance covers the losses relating to damage to, or loss of information from, IT systems and networks. The policy, provided by NIG, assists with and management of the incident itself, which can be essential when faced with reputational damage or regulatory enforcement.

As a business, you will rely on information technology (IT) infrastructure to some degree.  As a result, you are exposed to the risks of business interruption, income loss, damage management and repair, and possibly reputational damage if IT equipment or systems fail or are interrupted (breached).

A UK Government survey* estimated that in 2015 74% of small to medium sized (SME) organisations suffered a cyber breach. The average cost of a cyber-security breach can be as much as £310,000 for an SME.

While existing insurance policies such as commercial property, business interruption or professional indemnity insurance, may provide some elements of cover against cyber risks, businesses are increasingly buying specialised cyber insurance policies to supplement their existing insurance arrangements, particularly if, like you, they hold:

  • sensitive customer details such as names and addresses or banking information;
  • rely heavily on IT systems and websites to conduct their business;
  • process payment card information as a matter of course.

For a copy of our guide to Cyber insurance, the cover the policy** provides and examples of how the cover could benefit you, click here.

* Information Security Breaches Survey 2015, Department for Business, Innovation & Sills and MP Ed Vaizey
** For full terms and conditions please refer to the policy wording available on request.